Fed Funds Open at 0.17%, Within Target Range, According to ICAP

Fed funds, the U.S. overnight inter-bank lending rate, opened at 0.17 percent, within the Federal Reserve’s target of zero to 0.25 percent.

Fed funds closed at 0.16 percent on Oct. 12 after trading from 0.14 percent to 0.21 percent and averaging 0.16 percent, ICAP Plc, the world’s largest inter-dealer broker, said in an e-mailed statement.

The central bank will acquire Treasuries maturing from October 2018 to August 2020. The purchases are the part of the Fed’s program, which lasts through the end of the year, to replace $267 billion of short-term debt in its portfolio with longer-term Treasuries in an effort to reduce borrowing costs.

The central bank plans to purchase from $4.25 billion to $5.25 billion of securities today, according to the New York Fed’s website.

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